Personal Loan Calculator
Personal loans are installment loans — fixed rate, fixed monthly payment, fixed end date. Unlike credit cards, you know exactly when you'll be debt-free. On a $10,000 balance, a personal loan at 14% APR beats a credit card at 22% APR by over $2,000 in interest over 3 years.
Enter your loan amount, interest rate, and term to see your monthly payment, total interest, and a full amortization breakdown. Also compares against carrying the same balance on a credit card.
2026 Personal Loan Rates by Credit Score
| Credit Score | Tier | Rate Range | Monthly ($10k, 36mo) | Total Interest |
|---|
Amortization Summary — First 12 Months
| Month | Payment | Principal | Interest | Balance |
|---|
Personal Loan vs Credit Card: Which Is Cheaper?
The core use case for most personal loans is debt consolidation — converting high-rate credit card debt into a single, lower-rate installment loan. The math is straightforward: the average credit card charges 21%–22% APR. A borrower with good credit can get a personal loan at 10%–15% APR. On $15,000 of debt over 3 years, that difference is $3,000–$4,000 in interest savings.
Beyond rate, the installment structure itself has value. Credit card minimum payments are designed to keep you in debt as long as possible — a $15,000 balance at 22% with 2% minimum payments would take over 30 years to pay off. A personal loan at the same rate on a 3-year term is paid off in exactly 36 months. The forced structure of a personal loan is a feature, not a limitation.
The exception: 0% intro APR credit cards. If you can qualify for a 0% offer (typically 12–21 months) and pay off the full balance within the promotional window, it beats any personal loan rate. But this only works with genuine discipline — if the balance isn't cleared before the promo expires, the rate typically jumps to 25%+ retroactively on the remaining balance.
What Lenders Look For
Credit score: The most important factor. A 720+ score opens rates in the 7%–12% range. Below 640, rates hit 26%–36%, which makes personal loans less compelling versus alternatives. Check the rate table in the calculator for your tier.
Debt-to-income ratio (DTI): Most personal loan lenders cap DTI at 35%–40%. Your proposed loan payment is included in the DTI calculation. Use our DTI calculator to see where you stand (the math is the same for personal loans as for mortgages).
Employment and income: Stable income matters — W-2 employment is easiest, but self-employment is accepted with 2 years of tax returns. Most lenders have minimum income requirements of $25,000–$35,000/year.
Purpose: Debt consolidation is viewed most favorably by lenders. Some lenders let you specify it explicitly and will directly pay your creditors rather than depositing funds in your account.
Origination Fees: The Hidden Cost
Many personal loans charge an origination fee of 1%–8% of the loan amount, deducted upfront from the disbursement. On a $10,000 loan with a 5% origination fee, you receive $9,500 but pay interest on the full $10,000. The APR you see in the calculator already factors this in — that's why comparing APR (not just rate) is essential. A "10% rate" with a 5% origination fee has a higher effective APR than a "12% rate" with no fees.
| Option | Rate | Monthly | Total Interest | Payoff |
|---|---|---|---|---|
| Personal loan — excellent credit | 9% | $318 | $1,449 | 36 mo |
| Personal loan — good credit | 14% | $342 | $2,311 | 36 mo |
| Credit card (min payment 2%) | 22% | ~$200 → $0 | $12,800+ | 30+ yrs |
| Credit card (fixed $342/mo) | 22% | $342 | $4,040 | 38 mo |
For more on managing and eliminating debt, read our guide on debt avalanche vs snowball strategy and use the debt payoff calculator to model your specific debts. If you're borrowing for a car, see the auto loan refinance calculator.
Frequently Asked Questions
What is a good interest rate for a personal loan?
Personal loan rates in 2026 range from 7%–36% APR. Excellent credit (720+) typically qualifies for 7%–12%. Good credit (680–719) gets 12%–18%. Fair credit (640–679) gets 18%–26%. Below 20% APR is generally considered competitive; above 25% should prompt you to explore alternatives like 0% balance transfer cards or secured loans.
How does a personal loan affect your credit score?
Applying triggers a hard inquiry (–5 to –10 points temporarily). The new account reduces average account age slightly. On-time monthly payments build positive history. Over time, consistently paying reduces your overall debt and improves your score. Net effect of using a personal loan to consolidate credit card debt is usually positive — lower credit utilization from paid-off cards outweighs the inquiry.
Personal loan vs credit card: which is cheaper?
For amounts over $5,000 that can't be paid in 12 months, personal loans almost always win on rate (14% vs 22% average). Credit cards only win with a 0% promotional APR if you're confident you'll pay the full balance before the promo expires. If you carry a balance after the promo ends, the rate typically jumps to 25%+ on the remaining balance.
What can you use a personal loan for?
Debt consolidation, home improvement, medical expenses, major purchases, moving costs, weddings, and emergency expenses are all common uses. Most lenders prohibit business purposes, investments, education (use student loans), and real estate down payments. Debt consolidation is the most financially beneficial use — converting revolving credit card debt to a fixed installment loan.
How long does it take to get a personal loan?
Online lenders can approve and fund in 1–3 business days. Banks and credit unions typically take 5–7 business days. Some lenders offer same-day funding for existing customers. Pre-qualification (soft pull, no credit score impact) is usually instant and shows you estimated rates before you formally apply.
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